Financing US independent producers through the energy transition Report

Insight 22 July 2021

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Report summary

Abundant capital fueled the growth in US unconventional production. But poor capital stewardship and growing environmental headwinds challenge US independent producer's ability to raise financing in the future. Functional capital markets remain critical for the long-term sustainability of the sector. The standard for investors and lenders to supply capital to US Independent's continues to evolve. Companies that successfully navigate these challenges through a series of necessary actions will be positioned to continue enjoying capital markets' support beyond the immediate horizon.

Capital markets headwinds
1.) Harvesting cash flow
2.) Stronger emission targets to meet lender and investor requirements
3.) Consolidation benefits sector health
4.) Disciplined allocation of new proceeds
Conclusion

Tables and charts

This report includes 11 images and tables including:

Lower 48 capital requirements and cash flow forecast (2021-2030)
2021 - 2030 aggregate cash flow profile

2021 - 2030 aggregate base case free cash flow by company
2021 - 2030 base case reinvestment rate by company
Lower 48 Independent net zero Scope 1 and Scope 2 emission targets
Self-reported Scope 1 & 2 GHG emissions intensity
Upstream value at risk for oil-focused producers based on potential carbon taxes
Interest savings in Lower 48 M&A
US Independent cumulative bond issuance
2021 YTD new issue supply - use of proceeds